Credit cards for the self-employed

While being your own boss offers many perks, it can make it difficult to borrow money. Thankfully, it’s not impossible. Here are some tips on how you could get a credit card if you’re self-employed.

Understand how lenders make their decisions

Every lender has their own system for identifying who they’ll accept for a credit card. To some, salaries are the most important thing and if you can prove your job is consistent, you’ll have a better chance of success.

To others, how well you’ve handled your debts in the past is often more important than how much you earn. Several providers now offer credit cards specifically for the self-employed and they’re worth considering. No matter what card you’re applying for, having a well-managed credit history does help.

Learn how to better your chances

Lenders test ‘stability’ in ways other than just considering your salary. Using the same bank for a long period of time will score you points, as will living at the same address for longer than three years.

Get a copy of your credit report from each of the major credit reference agencies, Experian, Equifax and Callcredit. You may find that your low credit score isn’t because you’re self-employed, but is actually the result of an error on your file. Mistakes are fairly common, so it pays to check. Read our understanding your credit score guide for further information.

With marbles’ free eligibility FastCheck, you can see your likelihood of acceptance without harming your credit report.

Know your options

If you’re disciplined, a credit card can be a useful tool. Just be aware that most of these cards come with high interest rates so avoid carrying a balance on one. By paying off your bill in full each month your credit rating could become stronger and, in time, you may find that you are able to get more favourable interest rates.

We understand that being self-employed doesn’t mean you’re irresponsible. A marbles card could help you build your credit rating over time by helping you to demonstrate that you can manage credit sensibly.

Representative Example:

Interest rate for purchases34.9% P.A.(variable)
With a representative34.9% APR(variable)
Assumed credit limit£ 1,200